The Discussion On How Bitcoin Can Change The World – Part 2
The continuation from the earlier post leaves us with more info on the Bitcoin and its applications. Read along
The Continuation From The Earlier Post
It is observed that the future is bright for bitcoin enthusiasts. Hence it is necessarily important to know what the underlying technology is and what the bitcoin is up to these days. Hence, we talk about the future of the Bitcoin in this post. Read on and get more information on the necessity of Bitcoin as seen by the world today.
Future of Bitcoin Adoption
Thereafter to transfer money to a friend thereby one’s bank takes a cut for providing services, whereas to purchase a house one pays significant fees for registration as well as stamp duty charges to register one’s ownership in multiple books and records. Therefore, through digital labeling, the indelible record of a bitcoin transaction has the potential to eliminate such third parties as well as their costs.
Hereafter Zerohedge cites those findings by a Goldman Sachs analyst who in 2013 money transfer fees would have fallen by 90% if bitcoin had been used as the global transaction fees at a retail point of sale meanwhile were $ 260 billion on over $ 10 trillion of sales. It is, therefore, using bitcoin that these fees fall by almost $ 150 billion to $ 104 billion. additionally, it is seen that credit card companies charge 2% - 4% to retail merchants. Therefore it uses charge-free bitcoins that would be a game-changer for small businesses that are running on thin margins as these are business with low sales volumes.
The Secret Behind The Bitcoin
It was here that a world bank report estimates that the international remittances will surely be worth over $ 700 billion as the banks and money transfer services take significant cuts ranging from 4% to 10% on the transferred amount. Therefore, this charge may be direct or indirect as the bitcoins allow free transactions beyond geographical boundaries. there is therefore a mere 3% savings on such transactional costs on the projected figure of $ 700 billion that would result in a savings of $ 21 billion leaving more money for the end consumers.
Hereby the potential of bitcoin remains not limited to transactional cost savings, as a Bloomberg report noted that more than half of the world’s population does not have a bank account although mobile penetration is above 75% s imagine bitcoin payment through mobile apps that could enable money transactions over remote distances at no extra costs.
Therefore, the secret behind bitcoin lies in the underlying blockchain which is a secure digital ledger on bitcoin networks that keeps track of bitcoins by recording every single transaction. It, therefore, facilitates agreement by all parties as to who owns how many bitcoins. Hence a bitcoin wallet holder will surely have a replica of the blockchain on the secure public bitcoin network as the virtually overrules any attempts of counterfeit.
The Current Picture Of Blockchain The Underlying Technology
Thereby this blockchain currently tracks and records money movements as the buyer A paid x bitcoins to seller B and however the same blockchain can be utilized to record transaction details including title deeds and transaction details that can act as public records as it could nullify the costs of title registration, ownership and record keeping.
It is here that firms like ColoredCoins.org are thereby adding attributes like colouring to bitcoins representing other assets like 100 shares of a company, an ounce of gold, or $ 5,000 which is like bitcoins, coloured coins can be used to trade the underlying assets. Therefore, if the market participants agree on a standard and honour the conversion of the coloured coin to something in the real world as a coloured coin can be used to represent ownership of that real-world thing. Therefore it comes that without paying a broker commission, one can sell one green coloured bitcoin to you that my represent 100 shares of Apple Inc giving you dividend payments and voting rights. Hence, it is effectively an extra layer has been built into bitcoins enabling the transfer of ownership of real-world commodities.
Wrapping Up The Discussion For Now
The magic of Bitcoin doesn’t end here. But the writeup did throw light on some of the important facts as seen by the world in Bitcoin. Therefore it is necessary to be updated on the underlying technology of blockchain. Here we continue the post describing more features about the bitcoin and the decentralized ledger technology commonly known as the Blockchain.